Here are Friday’s biggest conversations on Wall Street: Edward Jones upgrades Qualcomm to buy from hold Edward Jones said they see an “attractive” buying opportunity in Qualcomm. “We are upgrading Qualcomm to a buy from a hold because we believe the stock does not fully reflect our growth prospects.” Read more about this conversation here. Wells Fargo repeats Keurig Dr Pepper as overweight Wells Fargo that it is bullish on stocks in the beverage giant. We expect progress in the KDP narrative with results for Q222, with sustained strength in the “Cold”[ads1]; portfolio (packaged beverages, beverage concentrates, Latin America beverages) driving a top line, and sequential improvement in “hot” (coffee) after last quarter’s challenges. ” Morgan Stanley repeats Visa and Mastercard as top ideas Morgan Stanley said it was time for investors to consider shares in Visa and Mastercard, and that “travel recovery still has legs.” “V / MA can benefit from the reopening of Asia-Pac with room for more European tourism improvement, while the perception of inflation risk may be exaggerated, especially for higher income demos. V / MA also ensured given volume-driven revolutions along with continued shift to electronic payments.” JPMorgan reiterates Snap as overweight JPMorgan said it remains bullish on its way into Snap earnings next week, but that investors need to be patient. “3Q estimates likely high and rebuilding credibility / operating record will take time.” BMO repeats Microsoft as better results. “We are lowering our upcoming June quarters and FY23 estimates to reflect increasing currency headwinds, and we are introducing our FY24 forecasts.” Read more about this conversation here. Goldman Sachs downgrades Yelp to neutral from acquisitions Goldman said in its downgrade of Yelp that they see a more balanced risk / reward outlook. “What remains an open debate (and one that we think investors will be particularly focused on) is how the macroeconomic environment and the competitive landscape dictate growth in local advertising spending over the next 1-2 years.” Argus downgrades Delta to keep from buying Argus downgraded the stock due to disappointing earnings and weak prospects. “Delta has been hurt by capacity reductions and staff shortages, and has recently published weaker-than-expected earnings in the second quarter.” Deutsche Bank adds catalyst sales to Freeport-McMoRan. Deutsche said it was concerned the company was reporting disappointing earnings next week. “We expect Freeport’s Q2 / 22 results (due July 21) to be disappointing. We predict a significant miss vs. consensus on EBITDA driven by lower realized prices, negative preliminary pricing and non-recurring effects.” Bank of America adds Schlumberger to US1 list Bank of America added oil field service company to its US1 list and says international can be resilient in a recession. “Meanwhile, SLB, which is the most domestic (ie Russia) structured OFS (oilfield services) company in terms of Russia operations, remains the most opaque about the outlook for Russia’s operations (5% of revenues), and therefore continues we to monitor Russia’s situation closely for SLB. ” Stifel upgrades Norfolk Southern and Union Pacific to buy from hold Stifel said in its upgrade of the railway companies that they are cheap. “Although we generally reduce estimates for lower growth and higher OR (operating revenues), given the significant sales of shares and our view of a modest recession impact on the tracks, we are upgrading some of the cheapest names (CSX & NSC) from hold to hold. buy.” Bernstein starts Dexcom as better than Bernstein said in a note on Friday that the diabetes medicine company has a long runway for growth. “DXCM is a clear buy over a 1-2 year horizon. Even with conservative growth and margin estimates, we are 3% ahead of the top line consensus.” Read more about this conversation here. Bank of America repeats Nvidia as purchase Bank of America retained its buy rating on shares in Nvidia, but said that any weakness in the stock could affect other semiconductor companies. “NVDA has been the leader (s) for innovation / momentum / sentiment in the semifinals, and any weakness in the eps / stock can also affect the computer companies AMD, INTC, AVGO and MRVL.” Barclays repeats Amazon as overweight Barclays said in a note that it is cautiously optimistic on its way into earnings in early August. “We think there’s a decent chance for AMZN to print a ‘better than dreaded’ 3Q guide, and we’ll add selectively to the printout.” Morgan Stanley repeats Amazon as overweight Morgan Stanley said in a note that Amazon is “prepared” for a “acceleration” after the company’s Prime Day earlier this week. “We estimate that Prime Day generated $ 4.6 billion in revenue (12% above our expectations), which means a growth of 19%, an acceleration compared to 8% Prime Day growth in 2021, which gives us increased confidence in the strength of the Prime consumer / the potential for revenue acceleration in 3Q22. “UBS repeats Netflix as neutral UBS lowered its price target on Netflix to $ 198 per share from $ 355 ahead of earnings next week and said they have serious concerns about subscriber growth.” Expect decline in the second quarter in line with the guide and a cautious 2H outlook. “Read more about this conversation here. UBS repeats McDonald’s as buy UBS said in a note before earnings later this month that the stock is” best positioned on resilience. “” To Despite significant YTD results, MCD stocks should continue to perform better in a choppy and uncertain market given: defensive properties, inflation protection and key competitive advantages. “Wolfe downgrades American to underperform from peers and upgrades Allegiant to surpass peer performance Wolfe said in his upgrade of Allegiant that it has a “proven model.” The company also downgraded American because of its “high-end” balance sheet. “We are upgrading EVERYTHING from Peer Perform to Outperform as it has a proven model through previous recessions. … Finally, we are downgrading AAL from Peer Perform to Underperform given AAL’s advanced balance sheet effect heading into a downturn and with our estimates well below consensus next year.” Jefferies repeats Caterpillar and Deere while the acquisition Jefferies said it is bullish on shares in Deere and Caterpillar on its way to earnings later this quarter. “We expect most companies to meet or beat expectations for Q2. With long delays, declining supply chains and declining raw materials and logistics costs, we may even see some guidance increases.”
